British fashion retailer Debenhams has raised around £40 million (about $54 million) after investors snapped up a new share placement that exceeded

expectations, the company said on Thursday.

The fundraise, which was initially targeting £35 million, was oversubscribed as the group looks to shore up liquidity and give itself more room to manoeuvre during a challenging period for the retail sector.

Debenhams, formerly known as Boohoo Group, has been working through a turnaround marked by cost-cutting efforts and steps to reduce debt, as it grapples with ongoing supply-chain disruptions and softer consumer demand.

Alongside the equity raise, the retailer has been in talks with its lending syndicates to secure additional financial flexibility, underlining the pressure facing apparel businesses amid a tougher trading environment.

“This fundraise will deliver an improved capital structure for the group, providing us with greater financial flexibility to execute our turnaround strategy and deliver value for all shareholders,” chief executive Dan Finley said in a statement.

The company placed 222.2 million new shares at 18 pence each, generating net proceeds of approximately £38.7 million after expenses. Photo by Mtaylor848, Wikimedia commons.